The Access to Business Funding Bill in Fiji is set to receive parliamentary approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This important legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, a critical issue recognized both locally and globally.
Kamikamica stressed the urgent need for improved access to finance, particularly for rural communities where cooperatives have proven effective, especially among the indigenous Taukei population. The bill aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the role cooperative models can play in fostering sustainable development and social progress.
To enhance the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the recently approved Cooperative Development Fund is set to significantly bolster cooperatives’ operational capabilities and reflects the government’s commitment to this essential sector.
Recent public consultations highlighted the significant barriers many SMEs face in accessing traditional financing options due to insufficient revenue histories, credit ratings, or collateral, which have resulted in a substantial funding gap. The Access to Business Funding Bill is designed to bridge this gap through innovative financing solutions, including a small-offer regime to facilitate equity capital raising and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is a growing sense of optimism about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could lead to significant positive outcomes for the broader community and enhance the overall resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Overall, the Access to Business Funding Bill is a promising step toward improving financial access for MSMEs and cooperatives in Fiji, which bodes well for the nation’s economic future.
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